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INDIAN BUDGET 2021 HIGHLIGHTS !!

Top 100 Highlights of Indian Budget 2021

  1. The total estimate of all relief measures announced by govt & RBI so far is Rs 27.1 lakh cr. (13% of GDP) in Covd19.

  2. The National Statistical Office has projected a 7.7% contraction in GDP in 2020-21.

  3. No tax returns for Senior Citizens, age 75 years and above who have pension and interest income.

  4. Aim to double farmers income. The total financial impact of all AatmaNirbhar packages including measures taken by RBI was estimated to be about Rs 27.1 lakh cr.

  5. A portion of the agricultural fund will be allocated to APMC for furthering their infrastructure.

  6. Propose to amend the Insurance Act, propose to hike FDI limit to 74% from 49%. Also to allow foreign ownership & control with safeguards.

  7. For 2021-22; capital expenditure seen at Rs 5.54 lakh cr, +34.5% increase YOY.

  8. FY21 capital expenditure seen at Rs 4.39 lakh crore.

  9. Rs 44,000 crore under capital expenditure to be given to Department of Economic Affairs in FY22

  10. Over and above this, Rs 2 lakh crore will be provided to states and autonomous bodies to nudge their expenditure.

  11. FM says government committed to bringing down fiscal deficit below 4.5 pc of GDP by 2025-26.

  12. Income Tax returns will have prefilled data from capital gains etc. To ease compliance for taxpayers, details of salary income, tax payment and TDS are prefilled currently.

  13. Decriminalization under LLP Act Small Company definition changed, One Person Company revamped will be Big Boost to Startups.

  14. Big boost for startups. Incorporation of one person companies to incentivize innovation in startups. Reducing residency limit for Indian citizen to set up 1 person company from 182 to 120 days.

  15. Provided Rs. 15,700 crore to MSME sector. MSME allocation to be doubled. Government to set aside Rs 15,700 crore in FY22. Government also proposes to reduce margin money requirement from 25% to 15% for startups.

  16. Faceless Income tax Appellate Tribunals National faceless ITAT center to be set up.

  17. Reduce time limit for reopening of tax assessments to 3 years. Reduction in Time for Income Tax Proceedings – Presently an assessment can be opened in 6 years, and in serious tax fraud cases for up to 10 years. FM proposes to revise this limit for reopening of assessments to 3 years from the present 6 years.

  18. Tax Audit threshold of turnover further increased for digital transactions to 10 cr.

  19. Dispute Resolution Panel for small taxpayers.

  20. Advance tax on dividend to accrue only after it is declared.

  21. To provide Rs 20,000 crore in FY22 for recapitalization of public sector banks.

  22. Affordable housing is a priority area Rs1.5 lakh for loans to purchase affordable house is now extended by one more year.

  23. To further extend efforts towards unorganized labour force, I propose to launch a portal to collect relevant information on workers, building/construction workers among others.

  24. To enable deduction of tax on dividend income at lower treaty rates for FPIs.

  25. India FY21 budget deficit is said to be 9.5% of GDP. FY’21 fiscal deficit (Revised Estimate) pegged at 9.5% of GDP; fiscal deficit seen at 6.8% for FY22.

  26. India is said to estimate FY22 expenditure at about Rs 35 lakh cr.

  27. 11,000 kms of national Highway to be Completed.

  28. Divestment target for FY22 at Rs 1.75 lakh cr. Asking Niti Aayog to work on the next list of PSU cos that could be taken up for divestment. Other than IDBI Bank, two other PSBs and one general insurance company to be divested in FY22.

  29. Introduce Investor Charter as a right of all investors across financial instruments.

  30. 100% Electrification of Rail Routes by DEC 2023.

  31. Decriminalization under LLP Act Small Company definition changed, One Person Company revamped will be Big Boost to Startups.

  32. NRIs to be allowed to set up One Person Companies.

  33. Forthcoming census will be a digital census, allocating Rs 3768 crores for the exercise.

  34. Through the past year, the Finance Minister announced a Rs 30-lakh-crore plan, in ‘mini-budgets’ to beat Covid19..

  35. New scheme called PM Aatmanirbhar Swastha Bharat to be launched, outlay of `64,180cr over 6 yrs.

  36. Announcing a voluntary scrapping policy to phase out polluting vehicles. Vehicles to undergo fitness tests after 20 years for personal vehicles and 15 years for CVs.

  37. Jal Jeevan Mission Urban to be launched at outlay of Rs 2.87 lakh crore.

  38. 17,000 rural and 11,000 urban health and wellness centers to be set up.

  39. India has two COVID-19 vaccines available and we expect two more vaccines soon.

  40. A vision for Atmanirbhar Bharat in part of Sitharaman’s first part.

  41. FY22 budget proposals based on six pillars namely Health & Well-being, Inclusive Development Human Capital, Innovation and R&D, Physical & Financial capital and infrastructure, Minimum government, maximum governance.

  42. FY22 outlay (budget estimate) for health & well-being up 138%, is Rs 2,23,846 cr.

  43. Scheme of mega Invt textile park will be launched in addition to PLI scheme, 7 textiles parks to be unveiled over 3 years. Rs5 lakh cr will be lent by DFI in 3 years time.

  44. Professionally managed development financial institution (DFI) will be introduced with an allocation of 20,000cr.

  45. Asset monetization dashboard will be created to provide clarity to investor Monetization of gas pipeline of GAIL, HPCL planned.

  46. A scheme of Mega Investments Textile Park will be launched in addition to PLI Scheme which will create world class infrastructure with plug & play facilities to enable global champions in exports.

  47. To tackle the problem of air pollution, propose, Rs 2200 crore for 42 urban centers; also announcing a vehicle scrapping policy towards reducing vehicular pollution.

  48. Rs. 2.86 Cr. Household tap connection to be established.

  49. 3500 km of national highway work being planned in Tamil Nadu at an investment of Rs 1.3 lakh cr.

  50. Rs 1.03 lakh for highway project for Tamil Nadu.

  51. FY 22 allocation for Railways at Rs 1,10,055cr.

  52. Highway works proposed: 3500kms corridor in TN 1,100km in Kerala at investment of Rs 65,000 cr 675km in West Bengal at cost of Rs 95,000 cr 1300 kms in Assam in coming 3 years.

  53. Over 13,000 km length of roads at a cost of Rs 3.3 lakh cr has already been awarded under Rs 5.35 lakh cr Bharatmala project of which 3,800 kms have been constructed

  54. Main interventions under PM Aatmanirbhar Swasth BharatYojana include Support for Health and Wellness Centres, Setting up Integrated Public Health labs in all districts, Critical care hospital blocks, Strengthening of NCDC.

  55. National Monetisation Pipeline of potential brownfield infra projects to be launched. Details a few road and power assets to be transferred to NHAI, PGCIL InvITs.

  56. Scheme to assist Discoms will be launched with an outlay of over Rs 3 lakh cr.

  57. Railway to monetize dedicated freight corridors.

  58. Four Acts converged into Securities Market Code, Investor Charter Introduced to Protect Investors, Insurance Act Amended to introduce FDI and AMC to be set up to take over stressed debts of Banks.

  59. Proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act.

  60. Proposes to change the definition of a small company under the Companies Act 2013 by increasing their threshold for paid-up capital, from not exceeding Rs 50 lakhs, to not exceeding Rs 2 crores and Turnover from not exceeding Rs 2 crores to not exceeding 20 crores.

  61. Scheme for promoting flagging of merchant ships in India will be launched by providing subsidy support.

  62. Privatization of one General Insurance PSU and IPO of LIC proposed.

  63. PM Swastha Bharat Yojana with an outlay of over Rs64000 cr.

  64. Govt to announce a policy for the privatization of state-run cos & to create new list of companies for Divestment.

  65. Ujjwala Scheme to Cover 1 Crore more Beneficiaries.

  66. 100 more Dist. to be added under city Gas Expansion.

  67. In case of wheat, the amount paid to farmers in 2019-2020 was ₹62,802 crore and in 2020-2021 it was further increased to ₹75,060 crore.

  68. 1.54 crore farmers benefited from MSP in paddy and what in FY21 vs 1.24 crore YoY.

  69. Asset reconstruction and management company to be set up for stressed assets of banks.

  70. Ujjwala scheme will be expanded to over 1 crore more beneficiaries. We will add 100 more districts in the next three years to the city gas distribution network. A gas pipeline project will be taken up in Jammu and Kashmir.

  71. The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities.

  72. National Infrastructure Pipeline was launched with 6835 projects.

  73. Propose PSU Bank RECAP worth Rs. 20,000 Cr. FY 22.

  74. Government sets agriculture credit target of Rs 16.5 lakh crore for FY22.

  75. One-nation, one-ration plan under implementation by 32 states and union territories.

  76. Five major fishing harbors to be developed as hubs for economic activity.

  77. Micro irrigation corpus doubled to Rs 10,000 cr. Agriculture infra fund will be made available to APMCs.

  78. 100 new sainik schools will be set up in partnership with NGOs. There are other ‘umbrella’ structures to be created for higher education.

  79. For further setting up of Higher Education in Ladakh under NEP 2020, I propose to set up a central university in place.

  80. Propose Rs 40000 Crore outlay for FY22 Rural Infra Fund.

  81. After achieving target of 8 crore LPG connections, Pradhan Mantri Ujjwala Yojana to cover another additional 1 crore beneficiaries.

  82. Green scheme to be expanded to 22 perishable vegetable products.

  83. More than 15,000 schools in the country will be qualitatively strengthened to include all components of the National Education Policy.

  84. On the recommendations of the 15th Finance Commission, a detailed exercise has been undertaken to rationalize and bring down the number of Centrally Sponsored Schemes. This will enable consolidation of outlays, for better impact.

  85. Enhanced outlay of ₹ 1,18,101 crore for Roads.

  86. 1,000 more mandis will be integrated with electronic national market.

  87. A scheme for tea farmers will be introduced for the welfare of women and Children in Assam.

  88. Proposing substantial investments in the development of modern fishing harbors & fish landing centers. 5 major fishing harbors – Kochi, Chennai, Visakhapatnam, Paradip and Petuaghat will be developed as hubs for economic activities.

  89. Record sum of ₹ 1,10,055 crore to be provided for Indian Railways, out of which ₹ 1,07,100 is for capital expenditure only.

  90. New scheme at a cost of ₹ 18,000 crore for augmentation of public bus transport services.

  91. Will facilitate deployment of innovative PPP models enabling private players to finance, acquire, operate and maintain over 20,000 buses.

  92. Y’22 Gross borrowing target at Rs 12 lakh crore; Need another Rs 80,000cr in next 2 months, will approach market to raise it.

  93. Govt proposes portal to collect info on gig-workers, building and construction workers, among others.

  94. Govt proposes to amend apprenticeship law to enhance opportunities for youth.

  95. Contingency Fund of India corpus to be raised to Rs 30,000 crore.

  96. Normal ceiling for net borrowing for states at 4% of GSDP as per Finance Commission recommendations.

  97. Rs 1,500 cr earmarked for scheme to incentivize digital payments.

  98. Govt proposes national language translation initiative.

  99. States to get 41% share of taxes as per 15th Finance Commission recommendation; govt has accepted the recommendation

  100. Proposes to review 400 old exemptions in Customs duties in FY22.

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